ZT News Network
Srinagar, April 7: Individuals and businesses have to disclose more details of professional and residential status, as well as their income, while filing income tax returns (ITRs) for 2018-19, according to the new forms notified by the Income Tax Department.
An official at the Commercial Taxes Department, J&K, told Ziraat Times that this new form will be applicable for the income tax payers of Jammu & Kashmir as well, and that the form is designed “to further plug tax evasion in the state.”
The new ITR forms also require individuals to disclose more details on their residential status, such as the number of days spent in India and abroad, rather than giving a self-declaration on residential status, an official at Commercial Taxes Department told Ziraat Times.
Those who claim income tax exemption for farm income will have to disclose where the agricultural land is located, its size, whether it is irrigated or rain-fed, and whether they own the land or hold it on lease.
Taxpayers will need to be careful with ITR filings and will need to collate additional details well in advance, said experts. The option of filing tax returns in physical form is now available only to people aged 80 or more and are filing the simpler ITR-1 or ITR-4 forms.
The scope of reporting foreign assets and bank accounts has also been scaled up.
The new norms bar individuals who hold directorships in firms or had investments in unlisted company shares in the last fiscal year from using the simpler forms—ITR-1 or ITR-4. They have to use either ITR-2 or ITR-3 forms in which details of holdings of unlisted equity shares have to be disclosed. This covers those who have received employee stock options (ESOPs) in unlisted companies, including those listed outside India, experts said.
The new ITR forms seek to increase disclosure requirement on property transactions too, said Archit Gupta, founder and chief executive officer of Cleartax.com, a taxpayer service provider.
With inputs from LM